Currently, you can collateralize highly volatile assets such as GME and AMC,
but isn’t this dangerous?
At least 300% collateral is required to mint mGME or mAMC,
but if you want to mint other assets with mGME and mAMC as collateral,
The minimum collateral is set at 150%. This feels inadequate as collateral
For reference, the date when the value of GME moved significantly from the previous day
Feb 01, 2021 Close 225 Feb 02, 2021 Open 140.76 40% down
I personally think that it is up to the users to make that choice: to use volatile mAssets as collateral.
Right now minimum collateral ratio is assigned for each mAsset based on the mAsset’s volatility. But because the collateral being used is more volatile, shouldn’t mean that the asset being minted will have more volatility itself.
I think when volatile assets like mGME or mAMC were being minted above 300% collateral ratio, the minter has acknowledged the risk associated with using these assets already.